Set Up Massachusetts Paid Family and Medical Leave Deduction Code
Before using the Create Quarterly Family and Medical Leave File screen, you must set up the deduction code for tracking Paid Family and Medical Leave and then assign the deduction to the employees.
Guidelines for Massachusetts:
Take note of the following guidelines for setting up employee deductions:
- You must set up only one deduction with the deduction type of MAPFML for each employee. If you add multiple deductions with a deduction type of MAPFML for an employee, the system may not report the taxable wages correctly.
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If you use a deduction modifier code for the Massachusetts Paid Family and Medical Leave deduction, the deduction modifier code should add/subtract the same pay types for both contributions and deductions. For example, if a deduction uses a deduction modifier code where the Bonus pay type is subtracted out, the contribution should also use a deduction modifier code that subtracts out the Bonus pay type.
When the system creates the reporting file, it will add/subtract any Deduction Modifier pay types for both contributions and deductions to determine the taxable wages. It will not double the amount to add/subtract when the pay type applies to both the deduction and contribution.
For example, if an employee earns the following:
- Gross Wages: 5000
- Regular Wages: 4500
- Bonus: 500
If Bonus pay type is a pay type excluded from both the contribution and deduction, the taxable wages will be 4500, NOT 4000.
- When an employee is set up with a Massachusetts Paid Family and Medical Leave deduction, they should also have MA as their SUTA state.
Set Up the Massachusetts Paid Family & Medical Leave Deduction Code
This is an example of how to set up the Massachusetts Paid Family Medical Leave deduction code in Costpoint for employers with 25 or more employees if they opt to have the employee pay the maximum percentage of gross wages allowable by Massachusetts.
To set up the Massachusetts Paid Family & Medical Leave Deduction Code in 2019 :